eBay. Buying what's left.
eBay bought Depop, the Gen Z reselling app, for 1.2 billion dollars. Depop controls just 5 percent of the UK market. When you lose an entire generation, you have to buy it back.
THE GIST ON EBAY: "Buying What's Left"
Why did eBay buy Depop?
eBay invented online reselling 30 years ago and should own this market. But Vinted came along and made it simple: snap a photo, list it, no fees. Vinted now has 95 percent of the UK market and Depop has 5.
Yet 90 percent of Depop's users are under 35, and eBay's own users are getting old. It needs Gen Z, but it can't compete with Vinted. It's too big. Like turning an oil tanker in a canal.
Does this keep happening?
Big companies build complicated products, then someone makes it simple and wins. Facebook makes you build a profile and add friends. TikTok just shows you videos. Google gives you results, ChatGPT gives you answers.
eBay built auctions and categories. Vinted built take a photo. Simple always wins.
So what is eBay doing?
Paying 1.2 billion dollars for users on the wrong platform. Depop lost to Vinted because it's too complicated, and eBay is even more complicated, so it isn't solving the problem. It's buying it.
When you're too big to change and you know simplicity wins, you just buy what's left, call it a strategy and hope for the best.
Which do you reach for first to sell something?
Your take. One tap, then see how everyone else voted.
Quick answers
How much did eBay pay for Depop?
1.2 billion dollars.
What share of the UK market do Vinted and Depop hold?
Vinted has 95 percent and Depop 5, according to Huw.
Why did Vinted win?
It made reselling simple: take a photo, list it, no fees.
See you on the next one.
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